At the campfire the adventurers set up for the night they are suddenly attacked by ten adversaries, who look human.
However, it soon becomes clear that these are werewolves; three archers, six soldiers and the werewolf leader. The battle is hard, but as the number of soldiers diminishes, the morale of the others is shaken more and more. When the bard the party has met earlier joins in the battle on the adventurers' side, the tide turns further and further.
Finally, after three knockouts and on low hitpoints the adventurers manage to kill the werewolf leader and get one of the archers to surrender. The others are either dead or have fled.
The bard, who proclaims himself to be the new werewolf leader, thanks the characters for their help. Apparently the tribe of werewolves is a friendly one, and was living peacefully in the now burnt-down village. When their original leader went to visit the town with the poisoned well he got poisoned, but instead of become sick and dying he became insane and paranoid.
He killed some villagers and bullied the weaker-minded members of the tribe into helping him hunt down all those who were 'against' him. This behaviour led to the discovery of the werewolves by the villagers whereupon they decided to burn the village and move further south.
The bard suggests that the characters accompany them to this village to announce to the people there that the werewolf menace has been eradicated, and then they will together rebuild the burnt village (without telling the people that there are still werewolves left, of course).
After setting everything right the party travels back to Fallcrest, where they tell the Lord of their adventures. The Harkenwold seems to be safe for now, and the Aurum had something to do with the disturbances.
The characters get to keep the loaned equipment they got before they started on the quest, and are asked if they would be up for another mission. They certainly are and accept some more equipment which they will also be allowed to keep after completion of their new mission, which will be in Sharn, city of towers (among other things).